Success Story - "Raw Materials" Company Description $150 Million Chemical Processing Division Company Situation and Problem Unique but high cost product; declining sales; high and unstable material prices; high costs of production; excess inventory; several suppliers for some commodities; volume not consolidated; purchasing organization understaffed; contracts not always used or poorly written; users specified supplier to be used; RFQs rarely issued; raw material generally purchased on a spot market basis; e- procurement techniques not used. Paladin Actions & Recommendations Completed detailed analysis of all raw materials, categorized by commodity, supplier, and location. Reviewed contracts, analyzed unit costs, mapped procurement processes, applied best practices, identified and prioriti

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